CBI responds to GDP data for May 2026

Ben Jones, CBI Senior Lead Economist, said: 

"The economy managed to eke out modest growth in May. The pre-summer heatwave supported retail sales and probably provided a boost to some other consumer-facing sectors as well. But the broader sectoral picture was mixed, suggesting that the UK continues to struggle to build sustained momentum. 

 “Businesses remain cautious about the outlook for the rest of the year. Uncertainty over the policy outlook and the Autumn Budget, given the looming change in government, is likely to weigh on confidence and investment decisions. The renewed military strikes in the Middle East highlight the risk of further volatility in global energy and financial markets. Our own business surveys weakened in May and softened further in June, with private sector activity expected to remain subdued over the coming months. 

 "With a new Prime Minister coming into office, the government must restore competitiveness by tackling the growing cost pressures that businesses are facing in every corner of the country. This must include taking direct action to lower the UK's industrial electricity costs, which are currently 45% more expensive than the G7 median. Lowering industrial electricity costs will give businesses the confidence to invest and unlock stronger economic growth across the UK.”